Everyone wants to get as much for their home as possible when putting it up for sale. Often I hear Sellers say they “Want To Try It Out At X Price” or “We Need Room to Negotiate”. Both of these thoughts can cost a Seller thousands of dollars in wasted time and lost dollars in the final sale price. The temptation to test the market can be great, but over pricing, and even accepting a bid at an inflated price, has a definite downside.

Overpricing Leads to Diminished Interest - Two things bring this about. First all the Agents in the area recognize it as an over priced listing and are reluctant to bring their Buyers to the party. These agents are not going to risk their credibility with their Buyers by showing them properties not worth the price. And secondly, an over priced home becomes stale on the market. Sitting while the initial 3 weeks of interest fades and costing the owner in holding costs and delays in their move.

Overpricing Leads to Fewer Offers - Buyers told want to insult a Seller with a “low ball” offer. They feel very uncomfortable submitting a realistic bid when there is a large difference between asking price and market value.

Overpricing Leads to Financing Problems - If we can’t get it to Appraise we can’t sell it in today’s tightened market. No underwriter is going to take the risk plus Appraisers are clamping down on their valuations to avoid getting caught in a declining market.

Overpricing Leads to the Wrong Buyers - Buyers will be comparing your home to all the other on the market in the same price range. Those that are properly priced at market value will make your house look like a dissapointment and waste of time. The other properly priced homes will have more amenities, better conditions or updates. The Buyers who are qualified for your home will never see it on the internet because it will be too far out of thier price range. And when you finally drop the price they may have already bought.

“Price it High To Start and Then Drop It” is a strategy full of risk.  When you finally do drop the price the potential Buyers and Agents can smell desparation and need to sell. Or they will think something is wrong with the property. Eventually your property will sell but at how much of a loss when you take in to consideration carrying costs and time lost. Are you now carrying two mortgages, paying ongoing expenses like property taxes and slowly losing a potential profit.

How do you keep from overpricing a property - stick to the facts and dump your emotions out of it. Ask your professional real estate agent what has sold that is similar to your home as it is. That’s what the Appraiser’s are going to be looking at. Just the numbers and the facts are all that really matter. Work with your agent to develop a comprehensive marketing plan that will generate interest from the moment your home hits the market. Try to stay unbiased and realizes that selling a home is business not feelings. The first three weeks are crucial so don’t let the temptation to overprice seduce you away from getting a high price, quickly.

Shannon Aldrich, Keller Williams Coastal Realty Portsmouth NH

www.RealEstateSeacoast.com

Join our monthly enewsletter for updates on area real estate and local happenings by emailing saldrich@kw.com Your address will never be shared or sold.